Asked by Lyric Bolden on Jun 01, 2024
Verified
Jennifer takes 2 hours to make a loaf of bread and 1 hour to make a dozen cookies. Janet takes 3 hours to make a loaf of bread and 3/4 hours to make a dozen cookies. Who, if either, has an absolute advantage baking bread? Who, if either, has an absolute advantage making cookies?
Absolute Advantage
The ability of an individual, firm, or country to produce more of a good or service with the same amount of resources compared to others.
- Gain an understanding of the idea of absolute advantage and the ways in which it diverges from comparative advantage.
Verified Answer
DS
dhruv sonavaneJun 02, 2024
Final Answer :
Jennifer has an absolute advantage baking bread. Janet has an absolute advantage baking cookies.
Learning Objectives
- Gain an understanding of the idea of absolute advantage and the ways in which it diverges from comparative advantage.